CAGR Calculator
Compound annual growth rate (%) from begin, end and years.
How it works
CAGR = (end ÷ begin)^(1 ÷ years) − 1
CAGR converts total growth into an average yearly compound rate, useful for comparing investments over different horizons.
Begin must be > 0; positive means growth, negative means decline.
FAQ
Does CAGR show volatility?
No. CAGR is a smoothed average and hides interim swings; volatile investments need extra metrics.
Worked example
From 100,000 to 180,000 over 5 years: CAGR = (180000/100000)^(1/5) − 1 ≈ 12.5%.
The same 80% total gain over 10 years is only about 6.1% annualised — stretching the horizon shrinks the yearly figure.
Notes and limitations
CAGR is a geometric mean: a smoothed annual rate, not what any given year delivered. For volatile assets the lived experience differs sharply from CAGR. Use it — not cumulative return — to compare projects of different lengths.